bp, on behalf of the Tangguh production sharing contract partners, today announced that the first cargo of liquefied natural gas (LNG) produced by the new third liquefaction train at the Tangguh LNG facility, in Papua Barat, Indonesia, has safely been loaded and sailed, to be delivered to Indonesia’s state-owned power generator PT PLN (Persero). This marks the start of full commercial operation of the expanded Tangguh LNG facility.
The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4mtpa. The first cargo of LNG produced by the new train sailed from Tangguh on 18 October to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.
Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency, said: “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production.
“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh's three-train operation will significantly contribute to the national gas production target of 12 bscf/d by 2030.”
In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million workhours spent to complete the project.
Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy said: “The safe and successful start-up of Train 3 marks a new phase for Tangguh and is a proud day for bp and our Tangguh partners. I would like to thank the Government of Indonesia for our strong partnership and their continued support that has made this possible.“
“Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses.”
The Tangguh expansion is the third major project start-up for bp globally in 2023, following start of production from the Mad Dog II project in the US Gulf of Mexico and from the MJ field off the east coast of India.
Since beginning operations in 2009, Tangguh has worked to create positive social and economic impacts through comprehensive community development programmes. Train 3 will further enhance this, with a portion of the gas committed for electrification in Papua Barat, and the project aims to continue to increase the proportion of Papuans in Tangguh’s workforce from 73% today to meet its commitment of 85% by 2029.
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement.
This document contains certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events and circumstances – with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘targets’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including the risk factors discussed under “Risk factors” in bp’s most recent Annual Report and Form 20-F as filed with the US Securities and Exchange Commission and in any of our more recent public reports.
Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.
This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-0626.